Use the NPV method to determine whether Rouse Products should invest in the following projects:

Project A costs $$275,000$ and offers eight annual net cash inflows of $$62,000.$ Rouse Products requires an annual return of $12\%$ on projects like $A.$

Project $B$ costs $$375,000$ and offers ten annual net cash inflows of $$66,000.$ Rouse Products demands an annual return of $14\%$ on investments of this nature.

$($Click the icon to view the present value annuity table.$)$

$($Click the icon to view the present value table.$)$

$($Click the icon to view the future value annuity table.$)$

$($Click the icon to view the future value table.$)$

Requirement

What is the NPV of each project? What is the maximum acceptable price to pay for each project?

Calculate the NPV of each project. $($Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.$)$

The NPV of Project A is $$33,016.$

The NPV of Project B is

Reference

$\backslash$table$[[$Present Value of $$1,,,,],[$Periods$,1\%,2\%,3\%,4\%,5\%,6\%,8\%,10\%,12\%,14\%,16\%,18\%,20\%$